On the basis

Solution:
 
Income
(in Rs.crores)
Savings
(in Rs.crores)
Consumption
(in Rs.crores)
= [Income - Savings]
Change In Income Change in Savings Marginal Propensity To Save(MPS)
= [Change In Savings / Change In Income
0 -20 20 - - -
50 -10 60 50 10 0.20
100 0 100 50 10 0.20
150 30 120 50 30 0.60
200 60 140 50 30 0.60

(i) Marginal Propensity To Save (MPS) at Rs.150 crores level of income is 0.60

(ii) Autonomous Consumption = Rs.20 Crores ( i.e; At zero Income there is Consumption of Rs.20 Crores)






 

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